Entity for retail payments systems
- August 19, 2020
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Subject: Economy
Context:
Reserve Bank of India has unveiled the framework for setting up of pan-India Umbrella Entity for Retail Payments
Concept:
- The entity will be tasked with setting up, managing, and operating new payment systems in the retail space. It may operate as a ‘for-profit’ organisation, the RBI said.
- The entity formed shall be a company incorporated in India under the Companies Act, 2013, and may be a ‘for-profit’ or a Section 8 Company as may be decided by it.
- According to the RBI guidelines, the entity will have minimum paid-up capital of Rs 500 crore, with no single promoter group holding over 40 per cent investment in the capital.
- Based on the framework, payments system operators, as well as payments and technology service providers with three years of experience, are eligible to apply.